How to Start an LLC

ByAnnual Picks Updated on

Steps to Start an LLC:

1.Choose the state

Better register in your home state,If you register a out of state LLC, you need register a foreign LLC in your home state. Then you will pay taxes in both states.

2. Search Business Name

Conducting a business search through the Secretary of State website to determine if a particular business name is available.

If you choose Wyoming, search ‘Wyoming business name search’ on Google, then you will find this link: https://wyobiz.wyo.gov/business/filingsearch.aspx .

3.Get business address and Mailing address

A business address is the physical location where the business conducts its daily activities. A mail address is used to receive business mail, which can be different or same as business address.

If you don’t have a physical address, you can rent a virtual office or virtual mailbox.

Northwest Registered Agent allow you use their address as business address or mailing address for free. And they provide free mail forwarding service.

4. Designate a registered agent

A registered agent must be chosen to receive official and legal documents.

northwestregisteredagent.com is a good service for forming LLC, costs $39 +State Fee. They have 20+ years experience in business formation and they provide free templates like Articles of organization, Operating agreement.

5. File Articles of organization

Articles of organization is also called “articles of incorporation,” “certificate of information,” or “Statement of Information.”

Regardless of what they’re called in your state, an LLC’s articles of organization contain information such as:

  • The LLC’s name
  • The address of the LLC’s main place of business
  • The duration and purpose of the LLC
  • Whether the LLC is managed by its members or a manager
  • The name of the LLC’s registered agent
  • The address of the agent’s registered office
  • The signature of one or more of the LLC’s organizers

6. Prepare operating agreement

An operating agreement for a business is similar to a constitution for a government. It addresses the basic guidelines as to how the business will be formed, who the owners will be, their rights and responsibilities, dispute resolution procedures, issues if the company should be dissolved and a host of other potential subjects.

Having an operating agreement is particularly important if there will be more than one owner. A local attorney should be retained to work up the agreement.

7. Apply EIN.

An EIN, Employer identification number is a federal tax ID number for businesses, you need file Form SS-4 to IRS when applying EIN.

As you are US resident, you can apply EIN online on IRS for free.

The Form SS-4 requir you input the mailing address, that can be your home address.

The EIN confirmation letter can be used as “proof of address” when applying US bank.

7.Open a Business Bank Account

When applying US bank, only physical address is accepted.

Use your home address instead if your business address is virtual address or registered agent address.